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Rachel Ergo

Growth Strategist & Full-Stack Marketer

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Developed foundational demand generation and go to market strategies for more than 30 early-stage startups and 70 growth stage organizations.

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SaaS - Enterprise & SMB B2B

What are some tried-and-true metrics for enterprise/ARR-based SaaS companies?


Rachel Ergo

Growth Strategist & Full-Stack Marketer

In my experience, the longer sales cycle requires more attention. The metrics will be unique to your business, but you can't go wrong with these: Marketing & Sales Metrics Look at metrics that will help you scale and project growth, and then accelerate opportunity to close velocity #s and conversion rates of marketing qualified leads (MQLs) #s, time, and conversion rates of MQLs to sales qualified leads (SQLs) #s, time, and conversion rates of SQLs to opportunities #s, time, and conversion rates of opportunities to sales Customer Success Metrics An ARR SaaS business may have a guaranteed 12 month customer lifespan, but that doesn't guarantee the customer actually uses the product and won't churn at renewal time. Measuring product usage will help you discover patterns that cause churn, increase the perceived value of the product, and improve the customer experience. Financial Metrics Each Reporting Period (I'd recommend monthly) look at Values & Rate of Change Customer Acquisition Cost Average Value of a Customer look at Values, % of total, & Rate of Change Revenue from New Subscriptions Revenue from Renewal Subscriptions At the early stage, businesses will see new Subscriptions significantly outpace renewals. As the business matures, the % of total ARR from New Subscriptions will begin to decline, assuming churn rates are good.

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Growth HackingCustomer AcquisitionDigital MarketingStart-upsMarketing StrategyCustomer RetentionBusiness StrategyDemand GenerationRevenue & Profit Growth